SAP Carve-Out: Definition, Process & Business Value Explained

An SAP carve-out is a structured process used to separate specific business units, company codes or data from an existing SAP system, typically during mergers, divestitures or organisational restructuring. The process involves planning, system analysis, data migration, testing and post-implementation optimisation to ensure continuity and data integrity. A well-executed carve-out helps organisations reduce system complexity, maintain compliance and lower IT costs by enabling the decommissioning of unnecessary legacy systems. By combining structured data separation with archiving strategies, businesses can ensure long-term access to critical information while building a more agile and future-ready IT landscape.
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